Watch $0.2 support as Fantom retraces amid consolidation

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  • Phantom is down 4.71% in the last one day and 23.51% in the last week

  • Token is currently being returned within a consolidation

  • A drop below support could open more sell trades

Phantom FTM/USD has been adversely affected by a bearish correction in the crypto. The coin is down 4.71% on the previous day, with a weekly loss of 23.51%. Currently, FTM is trading at $0.2905. Despite the downside trend, Phantom is one of Ethereum’s rivals with strong fundamentals.

Phantom is a highly scalable independent decentralized project. Blockchain is suitable for decentralized applications and cryptocurrencies. With its low transaction fees and high throughput of Phantom Opera, it is one of the faster blockchains.

DeFi users, enterprise apps, and Ethereum virtual machine developers are currently flocking to the network. The FTM, which powers the staking and governance functions, is yet to reap the benefits of network development. The token remains at the center of crypto volatility.

FTM has registered a massive 91% drop from its highest point year so far. Short-term technical outlook shows consolidation amid weak momentum.

FTM consolidates sideways in a bearish market

Source: TradingView

As per the daily chart, FTM has been closed in a consolidation pattern. The token is trading between the $0.2 and $0.42 price levels. The pattern has been there for about four months.

Currently, FTM is on a retracement amid bearish momentum. The 20-day and 50-day moving averages are providing resistance to the upside. The two averages are potential points of consolidation or resistance in the case of a trend reversal.

The RSI is currently at 36, the lowest level since June. FTM should cross the $0.42 resistance level to become bullish even though the indicator is approaching the oversold zone. If the opposite happens, the token could retest the lower levels.

closing thoughts

FTM is facing a strong bearish momentum with a weekly loss of over 23%. The coin has been in consolidation for a long time. If the $0.2 support level fails to hold, the coin could trade lower.

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